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BEP 20

| May 31, 2024

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Key takeaways 

  • BEP-20 extends Ethereum’s ERC-20 standards. It serves as the token standard for the Binance Smart Chain. 

What is BEP 20? 

BEP-20 serves as the token standard on the Binance Smart Chain (BSC). They enable developers to create various types of tokens, including utility tokens, stablecoins, and tokens pegged to other cryptocurrencies. It extends the ERC-20 token standard from Ethereum. It offers enhancements to support diverse functionalities.

BEP-20 tokens are fundamental to the BSC ecosystem. Binance Smart Chain (BSC) is a blockchain platform developed by the Binance exchange. They facilitate transactions and interactions within decentralized applications (DApps). They offer advantages such as speed and low transaction fees compared to other blockchain platforms. They serve purposes such as representing financial assets and governance tokens for decentralized protocols. 

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What is Binance Smart Chain?

The Binance Smart Chain serves as an alternative to the Ethereum network. The smart chain addresses scalability issues like slow transaction times and high fees. It achieves this through a different consensus mechanism. It enables faster and more cost-effective transaction processing. Additionally, the Binance Smart Chain supports smart contracts. This allows developers to create decentralized applications (dApps) for various purposes directly within the ecosystem. 

Key Features of BEP20 Tokens 

BEP20 tokens offer several key features that contribute to their popularity among developers and investors. Their interoperability is a standout feature. This feature allows seamless transfer between various wallets and exchanges. It enhances their versatility compared to other token types. 

Moreover, BEP20 tokens provide faster and more cost-effective transactions compared to ERC20 tokens. This efficiency is crucial for peer-to-peer transactions. Thus enabling users to send and receive tokens swiftly and affordably. 

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Additionally, BEP20 tokens come with a standard set of functions that simplify interaction and integration into other projects. This user-friendly aspect appeals to developers seeking to build applications on the Binance Smart Chain. 

Difference between BEP2 and BEP20

BEP-2 is a technical standard that governs the implementation and issuance of tokens on the BNB Beacon Chain. Both BEP2 and BEP20 standards coexist and are entirely compatible. Moreover, the BNB coin, the native currency on both the Binance Smart Chain (BSC) and Binance Chain, facilitates their functionalities. 

Given that the Binance Smart Chain is an extension of the Binance Chain, the two are fully interoperable. This interoperability enables seamless token swapping between BEP2 tokens on the Binance Chain and BEP20 tokens on the BSC. 

Parameters of the BEP-20 Token Standard

The definition of BEP20 outlines the utility of the token standard. It’s essential to consider specific parameters integral to its functionality. 

  1. Blacklist: This parameter facilitates the blacklisting or banning of suspicious BEP20 addresses. It also restricts other potentially malicious addresses. 
  2. Can Mint: It serves as an inflationary mechanism for the BEP20 standard. This parameter determines the ability to mint new tokens, thereby increasing the token supply. 
  3. Can Burn: It complements the “Can Mint” parameter. “Can Burn” serves as the deflationary counterpart. It specifies the ability to burn tokens, reducing the token supply as needed. 
  4. Can Pause: This innovative parameter plays a crucial role in protecting against malicious attacks. Users can pause all BEP20 token operations in response to potential threats or attacks. 

In contrast to ERC20 tokens, where symbol and decimal are user-defined, these parameters are required for BEP20 tokens. Additionally, the BEP20 standard mandates the inclusion of a get owner function, helping in the identification of the token owner.